UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

            [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2000

                                       OR

            [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                    FOR THE TRANSITION PERIOD FROM ___ to ___


                         Commission file number: 0-25713


                             AREMISSOFT CORPORATION
          -------------------------------------------------------------
             (Exact name of Registrant as specified in its charter)

                Delaware                                  68-0413929
   -----------------------------------                --------------------
     (State or other jurisdiction of                    (I.R.S. Employer
      incorporation or organization)                   Identification No.)


Goldsworth House, Denton Way, Woking, Surrey, United Kingdom      GU21 3LG
-------------------------------------------------------------    ----------
           (Address of principal executive offices)               (Zip Code)

                               011-44-1483-885-000
               ---------------------------------------------------
               (Registrants telephone number, including area code)

                                       N/A
---------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
 report)


Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  Registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes [X]   No [ ]


       The number of shares outstanding of the Registrant's Common Stock:

           Class                             Outstanding at April 22, 2000
 -----------------------------               -----------------------------
 Common Stock, $.001 par value                         15,201,595


<PAGE>2

                             AREMISSOFT CORPORATION

                                      INDEX

<TABLE>
<S>                                                                             <C>


PART I - FINANCIAL INFORMATION                                                      PAGE
                                                                                    ----
Item 1.   Financial Statements:

          Consolidated Balance Sheets as at                                           3
          March 31, 2000 and December 31, 1999

          Consolidated Statements of Operations                                       4
          for the three ended March 31, 2000 and March 31, 1999

          Consolidated Statements of Cash Flows                                       5
          for the three months ended March 31, 2000 and 1999

          Notes to Interim Consolidated Financial Statements                          6


Item 2.   Management's Discussion and Analysis of Financial                           9
          Condition and Results of Operations


Item 3:   Quantitative and Qualitative disclosures about market risk                 14


PART  II - OTHER INFORMATION

Item 1--Legal Proceedings                                                            14

Item 2--Changes in Securities and Use of Proceeds                                    14

Item 3--Defaults upon Senior Securities                                              14

Item 4--Submission of Matters to a Vote of Security Holders                          14

Item 5--Other Information                                                            15

Item 6--Exhibits and Reports on Form 8-K                                             15

SIGNATURES                                                                           15


</TABLE>

<PAGE>3



                         PART I - FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

                             AREMISSOFT CORPORATION
                           CONSOLIDATED BALANCE SHEETS
                      (IN THOUSANDS, EXCEPT PER SHARE DATA)

<TABLE>
<S>                                                                        <C>                   <C>

                                                                           AS AT DEC. 31        AS AT MARCH 31
                                                                                1999                  2000
                                                                           -------------        --------------
                              ASSETS                                                               (unaudited)
Current Assets
Cash and cash equivalents                                                  $    13,386          $     15,238
Accounts receivable, less allowances for doubtful accounts
  of $507 at Dec. 31,1999 and at March 31, 2000                                 18,115                19,648
Accounts receivable - disposition proceeds                                       2,592                     -
Other receivables                                                                  705                 1,129
Inventory                                                                        1,603                 1,287
Deposits paid on service and maintenance contracts                               3,712                 2,736
Prepaid expenses and other assets                                                2,423                 1,832
                                                                           -------------        --------------
Total Current Assets                                                            42,536                41,870
                                                                           -------------        --------------
Investments                                                                      1,803                 1,803
Property and equipment, net                                                      1,847                 1,960
Purchased and developed software, net of accumulated
Amortization of $5,893 and $ 5,967 at Dec. 31, 1999 and
  March 31, 2000 respectively.                                                     948                   874
Intangible assets, net of accumulated amortization of $11,534 and
  $12,685 at Dec. 31, 1999 and at March 31, 2000, respectively                  13,810                12,659
                                                                           -------------        --------------
Total assets                                                                    60,944                59,166
                                                                           =============        ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable                                                                 6,910                 4,154
Accrued payroll taxes                                                              574                   348
Accrued value added taxes                                                        1,055                   338
Accrued income taxes                                                             6,572                 7,196
Current portion of capital lease obligations                                        24                     -
Other accrued expenses                                                           2,371                 2,044
Bank loans and short term demand facility                                            -                     3
Deferred revenue                                                                 7,190                 6,255
                                                                           -------------        --------------
Total Current Liabilities                                                       24,696                20,338
Capital lease obligations, less current portion                                      2                     2
                                                                           -------------        --------------
Total liabilities                                                               24,698                20,340
                                                                           =============        ==============
Stockholders' equity
Preferred stock, par value $0.001; 15,000,000 authorized;
  no shares issued and outstanding at Dec. 31, 1999 and at
  March 31, 2000                                                                     -                     -
Common stock, par value $0.001; authorized 85,000,000 shares;
  15,192,831 and 15,201,595 shares issued and outstanding at
  Dec. 31, 1999 and at March 31, 2000, respectively                                 15                    15
Additional paid-in-capital                                                      57,325                57,400
Accumulated deficit                                                            (18,921)              (16,426)
Accumulated other comprehensive income                                          (2,173)               (2,163)
                                                                           -------------        --------------
Total stockholders' equity                                                      36,246                38,826
                                                                           -------------        --------------
Total liabilities and stockholders' equity                                 $    60,944          $     59,166
                                                                           =============        ==============

</TABLE>


The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

<PAGE>4


                             AREMISSOFT CORPORATION
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      (IN THOUSANDS, EXCEPT PER SHARE DATA)

<TABLE>
<S>                                                                    <C>                  <C>

                                                                        For three months ended March 31
                                                                              1999             2000
                                                                           -----------       ----------
                                                                           (unaudited)       (unaudited)

Revenues
Software Licenses                                                          $    5,360         $ 11,137
Maintenance and Services                                                        6,274            9,132
Hardware and other                                                              1,478            1,248
                                                                           -----------        ---------
Total revenues                                                                 13,112           21,517

Cost of revenues
Software Licenses                                                                 716            1,192
Maintenance and Services                                                        1,987            2,822
Hardware and other                                                              1,037              988
Amortization of purchased software and capitalized software
Development cost                                                                   62               74
                                                                           -----------        ---------
Total cost of revenues                                                          3,802            5,076

Gross Profit                                                                    9,310           16,441
Operating Expenses
Sales and marketing                                                             4,865            8,053
Research and development                                                        1,464            1,853
General and administrative                                                      1,188            2,396
Amortization of intangible assets                                                  88            1,151
                                                                           -----------        ---------
Total operating expenses                                                        7,605           13,453

Profit from operations                                                          1,705            2,988
Other income (expense):
Interest expense, net                                                            (507)               -
Non operating income                                                                -              131
                                                                           -----------        ---------
Income before income taxes                                                      1,198            3,119
Income tax expense                                                                395              624
                                                                           -----------        ---------
Net income                                                                        803            2,495
                                                                           ===========        =========
Basic net income per share                                                 $     0.08         $   0.16
                                                                           ===========        =========
Diluted net income per share                                               $     0.08         $   0.14
                                                                           ===========        =========
Basic weighted average shares outstanding                                      10,000           15,202

Diluted weighted average shares outstanding                                    10,015           17,261


</TABLE>


The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

<PAGE>5

                             AREMISSOFT CORPORATION
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (IN THOUSANDS)

<TABLE>
<S>                                                                          <C>                <C>

                                                                              For three months ended March 31
                                                                                     1999           2000
                                                                                 ------------    -----------
                                                                                 (unaudited)     (unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                                                              803         2,495
Adjustments  to  reconcile  net  income  to net cash
 provided  by in  operating activities:
Depreciation                                                                            250           188
Amortization                                                                            150         1,225

Changes in assets and liabilities:
Accounts receivable                                                                   1,316        (1,533)
Accounts receivable - disposition proceeds                                                -         2,592
Other receivables                                                                       (39)         (424)
Inventory                                                                              (303)          316
Deposits paid on service and maintenance contract                                     2,526           976
Prepaid expenses and other assets                                                      (905)          591
Accounts payable                                                                      1,145        (2,756)
Deferred revenue                                                                       (883)         (935)
Accrued taxes payable                                                                (1,307)         (319)
Other accrued expenses                                                               (1,336)         (327)
                                                                                 ------------    -----------
Net cash provided by operating activities                                             1,417         2,089
                                                                                 ------------    -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment                                                    (461)         (301)
Loan to related party (net)                                                             (12)            -
                                                                                 ------------    -----------
Net cash (used in) investing activities                                                (473)         (301)
                                                                                 ------------    -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of warrants                                                        -            75
Loan from related party                                                                  13             -
Principal payments of capital lease obligations                                           -           (24)
Short-term demand facility                                                                -             3
                                                                                 ------------    -----------
Net cash provided by financing activities                                                13            54
                                                                                 ------------    -----------
Net increase (decrease) in cash & cash equivalents                                      957         1,842
Effect of foreign currency exchange rates on cash and                                   (24)           10
cash equivalents
Cash and cash equivalents, at beginning of period                                       149        13,386
                                                                                 ------------    -----------
Cash and cash equivalents, at end of period                                      $    1,082       $15,238
                                                                                 ============    ===========
Supplemental disclosure:
Interest paid                                                                    $      507       $     0
Income taxes paid                                                                $        0       $   128

</TABLE>

The  accompanying  notes are an integral  part of these  consolidated  financial
statements.


<PAGE>6

         NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


1.   BASIS OF PRESENTATION

The accompanying  unaudited  consolidated financial statements and notes thereto
have been prepared in accordance with generally accepted  accounting  principles
for interim  financial  information and pursuant to the rules and regulations of
the Securities and Exchange  Commission.  Interim  results of operations for the
three-month  period  ended  March 31,  2000 are not  necessarily  indicative  of
operating results for the full fiscal year.

In the opinion of management,  all  adjustments  consisting of normal  recurring
entries  necessary  for the  fair  presentation  of the  consolidated  financial
position,  results of  operations,  and  changes  in cash flows for the  periods
presented  have been  included.  The  preparation  of  financial  statements  in
conformity with generally accepted accounting  principles requires management to
make estimates and  assumptions  that affect the reported  amounts of assets and
liabilities at the date of the financial  statements and the reported amounts of
revenues and expenses during the reporting  period.  Actual results could differ
from those estimates.

The  balance  sheet at  December  31,  1999 has been  derived  from the  audited
financial  statements  at that date but does not include all of the  information
and footnotes required by generally accepted accounting  principles for complete
financial statements.


2.   FOREIGN CURRENCY TRANSLATION

The functional  currency of the Company and its United Kingdom  subsidiaries  is
the British pound. The functional currencies of the other subsidiaries are their
local currencies.

For reporting purposes,  the financial statements are presented in United States
dollars and in accordance  with Statement of Financial  Accounting  Standard No.
52,  "Foreign  Currency  Translation".   The  consolidated  balance  sheets  are
translated  into United States dollars at the exchange  rates  prevailing at the
balance  sheet  dates and the  statements  of  operations  and cash flows at the
average  rates  for the  relevant  periods.  Gains  and  losses  resulting  from
translation  are  included as a component  of  accumulated  other  comprehensive
income (loss).

Net gains and losses resulting from foreign  exchange  transactions are included
in the consolidated statements of operations



<PAGE>7

3.   NET INCOME PER SHARE

The following table sets forth the computation of basic and diluted earnings per
share (in thousands, except per share data):

<TABLE>
<S>                                                                             <C>            <C>

                                                                                  For three Months Ended
                                                                                          March 31
                                                                                     1999         2000
                                                                                   --------     ---------

Numerator used for both basic and diluted earnings per share                           803         2,495

Denominator for basic earnings per share:
  Weighted average shares outstanding                                               10,000        15,202
Denominator for diluted earnings per share:
  Denominator for basic earnings per share                                          10,000        15,202
  Effect of dilutive securities:
     Options and Warrants                                                               15         2,059
                                                                                   --------     ---------
                                                                                    10,015        17,261

Basic Earnings per share                                                             $0.08         $0.16
Diluted Earnings per share                                                           $0.08         $0.14

</TABLE>



4.   COMPREHENSIVE INCOME

During June 1997, the Financial  Accounting Standards Board issued SFAS No. 130,
"Reporting  Comprehensive  Income"  ("SFAS No. 130").  SFAS No. 130  establishes
standards  for  the  reporting  and  display  of  comprehensive  income  and its
components in a full set of general-purpose  financial  statements.  The Company
adopted  SFAS  No.  130  during  1999.   Included   within   accumulated   other
comprehensive income are the cumulative amounts for foreign currency translation
adjustments.


Comprehensive  income for the three  months ended March 31, 1999 and 2000 are as
follows (in thousands)

                                                      1999            2000
                                                      ----            ----

Net income                                           $ 803         $ 2,495
Foreign currency translation adjustments              (24)              10
                                                     -----         -------
Comprehensive income                                 $ 779         $ 2,505
                                                     -----         -------

5.   SEGMENT REPORTING INFORMATION

The Company has adopted SFAS 131 "Disclosure about Segments of an Enterprise and
Related  Information"  during 1999,  which  changes the way the Company  reports
certain information about its operating segments.

<PAGE>8


The  Company  develops,   markets,   implements  and  supports   enterprise-wide
applications  software  targeted  at  mid-sized   organizations  mainly  in  the
manufacturing,  healthcare, hospitality, and construction industries. Management
considers  each  industry  to  be  a  reportable  segment,  with  each  industry
representing a strategic  business that offers  products and services to various
customers.  These  industries  are  managed  separately  because  each  requires
different product and marketing strategies.

Within each  industry,  the Company has  adopted  tailored  sales and  marketing
strategy.  This strategy includes  advertisements in leading trade publications,
participation  in trade shows and sponsorship of user groups.  In addition,  the
Company has developed corporate sales and marketing materials as well as general
financial  and  technical   materials  that  are  distributed  to  each  of  our
subsidiaries  for  inclusion  in their  sales  materials,  thereby  promoting  a
consistent portrayal of our image and products. The Company markets its products
primarily  through  a  direct  sales  force  in each of the  industries.  In the
manufacturing and hospitality industries,  the Company also relies, to a limited
extent, on distributors to sell our products.

The accounting policies adopted by each industry are the same as those described
in  the  summary  of  significant  accounting  policies.   Management  evaluates
performance  based on profit/(loss)  from operations  before interest and income
taxes.



Summarized financial information  concerning our reportable segments is shown in
the following table:


<TABLE>
<S>                                      <C>             <C>           <C>           <C>           <C>             <C>

                                         MANUFACTURING   HEALTHCARE  HOSPITALITY  CONSTRUCTION       OTHER         TOTAL


Segmental analysis for the three months ended March 31, 2000


Revenues from external customers             $6,797        $6,786        $5,199        $1,555        $1,180       $21,517
Depreciation and amortization                   326           358           333            75           321         1,413
Profit (loss) from operations                 1,544           682           756           155          (149)        2,988
Total segment assets                         16,875        14,124        12,787         3,347        12,033        59,166


Segmental analysis for the three months ended March 31, 1999

Revenues from external customers             $4,145        $3,984        $3,438        $1,102          $443       $13,112
Depreciation and amortization                    72            84            80            17           147           400
Profit (loss) from operations                   942           344           451           101          (133)        1,705
Total segment assets                         11,803         6,302         5,977         1,227         1,054        26,363

</TABLE>

The following table  represents  revenue by country based on country of customer
domicile and long-lived assets by country on the location of the assets.

                                   Revenues            Long-Lived Assets
                           -------------------------  -----------------------
                           Mar 31,1999  Mar 31, 2000  Mar 31,1999 Mar 31,2000
                           -----------  ------------  ----------- -----------

    United Kingdom         $   7,748    $    8,856     $ 1,886     $ 1,536
    Rest of Europe             3,257         7,160         465         470
    United States                378           666         124          98
    Asia                         449         1,590         532      15,178
    Rest of World              1,280         3,245          10          14
                           -----------  ------------  ----------- -----------
                           $  13,112    $   21,517     $ 3,017     $17,296
                           -----------  ------------  ----------- -----------


<PAGE>9

6.   SUBSEQUENT EVENT

In  December  1999  AremisSoft  Corporation  reported  on its  balance  sheet an
investment  in  Globalsoft.com  with cost value of $1.8  million.  On April 27th
Globalsoft's  IPO was declared  effective on the Cyprus  stock  exchange  giving
AremisSoft's  holding in  Globalsoft.com  a market value of  approximately  $110
million.


Item 2:    MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
           RESULTS OF OPERATIONS.

The discussion in this report on Form 10-Q contains  forward-looking  statements
that involve risks and  uncertainties.  The statements  contained in this report
that are not purely historical are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities  Exchange  Act of  1934,  as  amended,  including  statements  on our
expectations,  beliefs,  intentions or strategies  regarding the future. In some
cases, you can identify forward-looking statements by terminology such as "may,"
"will,"  "should,"  "could,"  "expects,"  "plans,"  "anticipates,"   "believes,"
"estimates,"  "predicts,"  "potential"  or  "continue"  or the negative of these
terms or comparable  terminology.  These  statements  are only  predictions  and
involve known and unknown risks,  uncertainties and other factors, including the
risks  outlined in the section  entitled  "Risk Factors" in our Form 10-K Annual
Report for the year ended December 31, 1999 and the risks discussed in our other
Securities and Exchange Commission filings, that may cause our or our industries
actual results, levels of activity, performance or achievements to be materially
different  from  any  future  results,   levels  of  activity,   performance  or
achievements  expressed  or implied  by these  forward-looking  statements.  You
should not rely on these  forward-looking  statements,  which  reflect  only our
opinion as of the date of this  report.  We do not intend to update any of these
forward-looking  statements.  You should also carefully  review the risk factors
set  forth in other  reports  or  documents  we file  from time to time with the
Securities  and Exchange  Commission,  including  this and  following  quarterly
reports on Form 10-Q and any current reports on Form 8-K.

As used in this  report,  the terms  "we,"  "us,"  "our,"  "AremisSoft"  and the
"Company" mean AremisSoft  Corporation and its  subsidiaries,  unless  otherwise
indicated.

OVERVIEW

We develop,  market, implement and support enterprise-wide software applications
primarily  for  mid-sized   organizations  in  the  manufacturing,   healthcare,
hospitality  and  construction   industries.   Our  fully-integrated   suite  of
Internet-enabled  products  allows  our  customers  to manage and  execute  many
mission-critical  functions  within their  organization,  including  accounting,
purchasing,  manufacturing,  customer  service,  and  sales and  marketing.  The
modular  design  of  our  products  enables  us  to  provide  customers  with  a
cost-effective  scalable solution which can be easily  implemented.  We focus on
mid-sized  organizations  with  annual  revenues  of less than $200  million  to
capitalize on a market we believe is receptive to our  cost-effective  solutions
and shorter  implementation  periods.  To date,  we have  licensed  our software
applications to more than 6,000 customers in over twenty countries.

Our software  applications  use our internally  developed  three-tiered,  object
oriented  software  architecture,  which we call the Aremis  architecture.  This
architecture   enables   us  to   develop   software   solutions   rapidly   and
cost-effectively  by taking advantage of the common requirements of customers in
our target markets.  In addition,  we believe that, with 212 developers based in

<PAGE>10

our  facilities  in  India,  we have  established  a  cost-effective  model  for
implementing, supporting and enhancing our software applications

In the past six years,  we have  experienced  rapid growth,  both internally and
through  acquisitions,  with  revenues  increasing  from $6.4 million in 1994 to
$73.4  million  in 1999.  During  this  period,  we  successfully  acquired  and
integrated the operations of eleven businesses, which were principally operating
in the  United  Kingdom.  In each  acquisition,  we sought  to reduce  expenses,
rejuvenate  the existing  products of the acquired  business and  transition the
customers  to  products  that  utilize  the Aremis  Architecture.  Our  software
development   and  support   facility  in  India  provides  us  with  access  to
highly-skilled  technical  personnel who are  responsible for  rejuvenating  the
acquired products and developing new products in a cost-effective manner.

Our  objective  is to be a  leading  provider  of  enterprise-wide  applications
software in the Targeted  Markets.  Our strategy for  achieving  this  objective
includes (i) targeting mid-sized organizations, including divisions and business
units of larger companies,  (ii) focusing on strategic markets, (iii) leveraging
our cost-efficient India operations,  (iv) capitalizing on our investment in the
Aremis  Architecture,  (v) expanding our marketing,  sales,  support and service
capabilities  and  (vi)  acquiring  related  software  businesses,  products  or
technologies.

RESULTS OF OPERATIONS

Revenues

Total revenues increased 64.1% to $21.5 million for the three months ended March
31, 2000 from $13.1  million for the three  months  ended March 31,  1999.  This
increase was due to higher software  license revenues as a result of an increase
in the sale of higher margin  licenses,  and associated  maintenance and service
contract revenues and also the effect of additional revenue of  e-nnovations.com
of $ 1.2 million. The effect of the e-nnovations.com  acquisition on revenues is
mainly reflected in the three months ended March 31, 2000, since the acquisition
of e-nnovations.com was recorded in December 1999.

Software license revenues increased 107.8% to $11.1 million for the three months
ended March 31,  2000 from $5.4  million  for the three  months  ended March 31,
1999.  This  increase was primarily due to the growth in the number of installed
customers,  increased  sales of licenses for our Aremis 4.0 products,  and price
increases.  As a percentage of total  revenues,  license  revenues  increased to
51.8% for the three  months ended March 31, 2000 from 40.9% for the period ended
March 31, 1999.

Maintenance and service  contract  revenues  increased 45.6% to $9.1 million for
the three  months  ended March 31, 2000 from $6.3  million for the three  months
ended March 31,  1999,  as a result of the  increase in the number of  installed
customers and the growth in software license revenues.  As a percentage of total
revenues, maintenance and service contract revenues decreased to 42.4% for three
months ended March 31, 2000 from 47.9% for the period ended March 31, 1999.

Hardware and other revenues  decreased 15.6% to $1.2 million for the three month
ended March 31, 2000 from $1.5 million for the three month ended March 31, 1999.
As a percentage of total revenues, hardware and other revenues decreased to 5.8%
for the three  months ended March 31, 2000 from 11.3% for the three months ended
March 31, 1999,  reflecting our strategy to reduce the sale and  installation of
lower margin third-party hardware.

<PAGE>11

Cost of Revenues

The cost of revenues increased 33.5 % to $5.1 million for the three months ended
March 31, 2000 from $3.8 million for the three months ended March 31, 1999. As a
percentage of total revenues,  cost of revenues decreased to 23.6% for the three
month ended March 31, 2000 from 29.0% for the three months ended March 31, 1999.
The effect of  e-nnovations.com on the cost of revenue was $ 0.3 million for the
three months ended March 31, 2000.

Software  license  costs  increased  66.4% to $1.2  million for the three months
ended March 31, 2000 from $0.72  million  for the three  months  ended March 31,
1999.  This  increase was primarily due to the growth in the number of installed
customers,  increased  sales of  licenses  for our  Aremis  4.0  products.  As a
percentage of total revenues, license costs remained at 5.5% for both the period
ended March 31, 2000 and March 31, 1999.

Maintenance  and service  contract costs increased 42.1% to $2.8 million for the
three  months  ended March 31, 2000 from $2.0 million for the three months ended
March 31, 1999, as a result of the increase in the number of installed customers
and the growth in software license revenues.  As a percentage of total revenues,
maintenance and service contract costs decreased to 13.1% for three months ended
March 31, 2000 from 15.2% for 1999.

Hardware  and other  costs  decreased  4.8% to $1.0  million for the three month
ended  March 31,  2000 from $1.04  million  for the three  month ended March 31,
1999. As a percentage of total  revenues,  hardware and other costs decreased to
4.6% for the three  months  ended March 31, 2000 from 7.9% for the three  months
ended  March  31,  1999,   reflecting  our  strategy  to  reduce  the  sale  and
installation of lower margin third-party hardware.

Sales and Marketing

Sales and marketing  expenses consist primarily of expenses related to sales and
marketing,  personnel,  advertising,  promotion,  trade shows  participation and
public relations.

Our sales and marketing  expenses  increased 65.5% to $8.1 million for the three
months  ended March 31, 2000 from $4.9  million for the three months ended March
31,  1999,  primarily  due to the  expansion of sales and  marketing  activities
principally in the United States and Europe.  As a percentage of total revenues,
sales and marketing expenses increased to 37.4% for three months ended March 31,
2000, from 37.1% for the three months ended March 31, 1999.

Research and Development

Our research and  development  expenses  increased 26.6% to $1.9 million for the
period  ended March 31, 2000 from $ 1.5 million for the three months ended March
31, 1999. As a percentage of total revenues,  research and development  expenses
decreased  to 8.6% for the  three  months  ended  March 31,  2000 from  11.2% of
revenues for the three months ended March 31, 1999.  The decrease was  primarily
due to a  significant  portion of the planned  expenditures  relating to our new
generation  of  software  products  having  been  incurred  in prior  accounting
periods.

<PAGE>12

General and Administrative

General and  administrative  expenses  increased  101.7% to $2.3 million for the
three  months  ended March 31, 2000 from $1.2 million for the three months ended
March 31, 1999. As a percentage of total  revenues,  general and  administrative
expenses  increased to 11.1% for the three months ended March 31, 2000 from 9.1%
for the three months ended March 31, 1999.  The increase was primarily due to an
increase in operational  and  geographical  activities  compared to the previous
period.

Amortization of Intangible assets

Amortization  of  intangible  assets  increased  to $ 1.2  million for the three
months  ended March 31, 2000 from  approximately  $ 88,000 for the three  months
ended March 31, 1999. The increase in amortization of intangible  assets was due
to the goodwill  recorded on the  acquisition  of  e-nnovations.com  in December
1999.

Net Interest Expense

Net interest expense reflects interest on our credit  facilities,  as reduced by
interest  income on cash balances.  Net interest  expense was $0 million for the
three  months  ended March 31,  2000 as  compared to $0.5  million for the three
months ended March 31, 1999.  The decrease was primarily due to the repayment of
short and long term loans in 1998.

We received  approximately  $ 0.13 million net interest from deposits during the
three months ended March 31, 2000.

Income Tax Provision

There is a provision  for income taxes for the three months ended March 31, 2000
of $0.6  million.  There was a provision  for income  taxes for $0.4 million the
three months ended March 31, 1999.  The increase in income taxes  resulted  from
the increase in our profitability in 2000. Our effective tax rate was assumed at
20%.

Recoverability  of the deferred tax asset  derived  mainly from  operating  loss
carry  forwards in the United  Kingdom has been reviewed at March 31, 2000,  and
although certain subsidiaries generated taxable income in the three months ended
March 31, 2000, no assurances can be given that the level of taxable income will
be  sustained  at an adequate  level in the  appropriate  subsidiaries.  It must
therefore be considered  more likely than not that the deferred tax benefit will
not be recognized at this stage.

LIQUIDITY AND CAPITAL RESOURCES

We have funded our operations since inception primarily through borrowings under
bank credit  facilities,  private  placements  of equity  securities  and equity
contributions by our principal  stockholder.  As of March 31, 2000, we had $15.2
million of cash and cash equivalents. We had a working capital surplus of $ 21.5
million as of March 31, 2000.

<PAGE>13


We believe that the existing  cash and cash  equivalents,  will be sufficient to
meet our working capital and currently planned expenditure  requirements for the
next  nine  months.  We  may,  from  time  to  time,  consider  acquisitions  of
complementary businesses, products or technologies, which may require additional
financing. In addition, continued growth in our business may, from time to time,
require additional  capital.  No assurances can be given that additional capital
will be  available  to us at such time or times as such  capital may be required
or, if available,  that it will be on commercially acceptable terms or would not
result in additional dilution to our stockholders.

We had an operating cash flow surplus of $2.1 million for the three months ended
March 31,  2000.  This  surplus was  primarily  due to  operating  profits and a
decrease in accounts receivable - disposition  proceeds,  partially offset by an
increase in trade accounts receivable and a decrease in accounts payable. We had
an operating  cash flow surplus of $1.4 million for the three months ended March
31, 1999. Operating cash flow is affected by seasonality, among other factors.

Accounts  receivable  increased  to $19.6  million for March 31, 2000 from $14.9
million for March 31, 1999. Accounts receivable at December 31, 1999 were $ 18.1
million.  The average days sales  outstanding  was 103 days for the three months
ended March 31, 1999 and 83 days for the three months ended March 31, 2000.  The
increase in receivables was due to an increase in the sales for the period.  The
decrease in average sales days outstanding  reflects the higher  collection rate
of accounts receivable.

Accrued  taxes  increased  from $3.0 million at March 31, 1999 to  approximately
$7.9 million at March 31, 2000.  The increase was  primarily  due to increase in
income tax of company due to higher profits.

We utilized cash for  investing  activities of $0.3 million and $0.5 million for
the three  months  ended  March  31,  2000 and  March  31,  1999,  respectively,
primarily the result of purchases of property and equipment.

Net cash provided by financing activities was approximately $54,000 and $ 13,000
for the three months ended March 31, 2000 and March 31, 1999, respectively.  For
the three  months ended March 31, 2000,  cash  provided by financing  activities
resulted from proceeds received from the exercise of warrants,  partially offset
by the repayment of capital lease obligations.

EURO CONVERSION

In  January  1999,  the Euro  was  introduced  as the  currency  of a number  of
participating  nations in the European Union. Although the United Kingdom is not
currently a participating nation, the introduction of the Euro raises conversion
issues for business  transacted  with  entities in  participating  nations.  Our
products  either include or have been upgraded to include the Euro and we do not
believe that the Euro conversion has had or will have a material  adverse effect
on our  business.  Because our critical  internal  systems have been modified to
accommodate a conversion to the Euro, we believe we are  adequately  prepared in
the event the United Kingdom converts to the Euro in the future.

<PAGE>14


Item 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Foreign Currency Exchange Rates

A significant  portion of our business is conducted in currencies other than the
United States dollar.  As a result, we are subject to exposure from movements in
foreign  currency  exchange  rates.  We  do  not  currently  engage  in  hedging
transactions designed to manage currency fluctuation risks.


Interest Rate Sensitivity

Our exposure related to adverse movements in interest rates is primarily derived
from the variable rate on our credit  facilities.  Interest  rates on our credit
facilities range from either Sterling LIBOR plus 3% to Sterling LIBOR plus 4% or
the lending bank's base rate plus the applicable  margin.  Increases in Sterling
LIBOR result in increases in our interest expense.  As of March 31, 2000, we had
no borrowings outstanding under our credit facilities.


PART II - OTHER INFORMATION


Item 1:  LEGAL PROCEEDINGS

None


Item 2:  CHANGES IN SECURITIES AND USE OF PROCEEDS.

We issued 8,764 shares of our Common Stock at $8.56 per share in connection with
the  exercise of  outstanding  warrants  during the three months ended March 31,
2000. Consequently, we received approximately $75,020 from the proceeds of those
exercises.  The  proceeds  were  used for  working  capital  and  other  general
corporate purposes.  The shares were issued in reliance upon the exemptions from
registration  contained  in  Section  4(2) of the  Securities  Act of  1933,  as
amended, and Regulation D and Regulation S promulgated thereunder.


Item 3:  DEFAULTS UPON SENIOR SECURITIES.

None


Item 4:  SUBMISSION OF MATTERS TO A VOTE OF SECURITY
         HOLDERS.

None


<PAGE>15



Item 5:  OTHER INFORMATION

None

Item 6:  EXHIBITS AND REPORTS ON FORM 8-K

None


<PAGE>16

                                                    SIGNATURES


Pursuant to the  requirements  of the Securities Act of 1934, the registrant has
duly  caused  this  report  to be  signed  on its  behalf  by  the  undersigned,
thereunder duly authorized.




                                              AREMISSOFT CORPORATION,
                                              a Delaware Corporation


Date:  May 12, 2000                           /s/ DR. LYCOURGOS KYPRIANOU
                                              --------------------------------
                                              Dr. Lycourgos Kyprianou
                                              Chairman of the Board &
                                              Chief Executive Officer





Date:  May 12, 2000                           /s/ MICHAEL TYMVIOS
                                              --------------------------------
                                                  Michael Tymvios
                                                  Chief Financial Officer